Brussels, 12/07/2000 (Agence Europe) - This Wednesday the European Commission adopted a legislative proposal to set a new, more simple, more complete and more efficient, telecommunications regulatory framework in Europe. It reduces the number of legislative instruments from 28 to 8. It proposes that Member States adopt a "package" of: a) five harmonisation Directives, b) a regulation for the unbundling of access to local loops, c) a draft Directive on liberalisation, d) a decision of Community policy in terms of radio spectrum.
In a Communiqué, the Commission indicated that its aim is "to drive forward the liberalisation of telecommunications markets by adapting regulations to the requirements of information society and the digital revolution." For the Commission, the creation of competition should lower prices and improve technological breakthroughs. The recent developments have allowed to transmit all kinds of messages, translated into digital code, on all the current platforms, such as televisions, mobile phones or computers. Commissioner Erkki Liikanen states that "less regulation, easier market entry and a level playing field across the European Union are pre-requisites for development of world class telecommunications and Internet services in Europe." Sectors already contribute to European economic growth, but "there are limits to the progress we have achieved: competition in local markets remains limited, and incumbent operators still dominate by far." According to the statistics published by the Commission services, the telecommunications market has risen from a 1999 value of EUR 160 billion to 191 in 2000. In 1999 the incumbent operators maintained a market share of 91%, while the number of operators has risen from 218 in 1998 to 557 in 1999.
To stimulate liberalisation, the Commission especially insisted on the need to rapidly proceed with the unbundling of access to the local loops. To this end it proposed to the Member States a regulation to open access to local loops from 31 December 2000. The operation consists of introducing competition to local copper wires networks, to reduce prices for access to the Internet and enable the use of technologies which increase speeds. The Commission had already adopted, in April 2000, a recommendation and communication on this issue. Hardly satisfied with the progress achieved by the States, it reinforced its provision by proposing to act through regulation. For Erkki Liikanen, the unbundling "is key to the break through of high-speed Internet in Europe and requires strong and urgent measures and today's decision is an adrenaline shot for industry and the Internet." The main provision of the regulation foresee: i) incumbent operators must provide competitors with full and shared unbundled access to their local copper loops on fair, reasonable and non-discriminatory terms, ii) physical access must be granted at any technically feasible point, iii) the price for unbundled access to the local loop must be cost-orientated, so long as competition is not sufficient to prevent excessive pricing, iv) operators must publish a reference offer to access.
The five harmonisation Directives include a framework Directive and four specific Directives i) authorisation, ii) access and interconnection, iii) universal service and user rights, iv) data protection in telecommunication services. This harmonisation foresees a more supple procedure for developing the regulation in line with technological and commercial changes.
The directives on authorisation, access and interconnection aim to create conditions of equal access by simplifying the rules. The directive on universal service aims to prevent any kind of exclusion from the Information Society. A decision on radio spectrum is also part of the package. This is an important element for third generation mobile communications and communications by satellite. It has an impact on the Union's policy relating to electronic communications, to the Galileo project and to radio-broadcasting. The decision follows public consultation organised on the 1998 Green Paper devoted to this theme. Its aim is to ensure effective use of the radio spectrum. It sets in place a Group of Senior Officials to advise the Commission in its task of ensuring the availability and the harmonised use of the radio frequency spectrum. Erkki Liikanen recalled the strategic importance of this field, illustrated by the recent sale by auction effected by certain Member States with a view to attributing authorisations for third generation cell phones.
Finally, the Commission adopted a draft "competition" directive that would substitute a single text for all the existing provisions on telecommunications liberalisation. It would consolidate, without adding new obligations, the Directive 90/388, amended several times since 1990. It has still to undergo public consultation before it can be finally adopted.